Toronto, Ontario, Canada (AHN) – Canadian Prime Minister Stephen Harper said Thursday he disagrees with a proposal by Washington to collect a $5.50 levy on all Canadians entering the U.S. by air and sea.

Harper said the plan, contained in the 2012 budget proposal of President Barack Obama, is an indicator of how far Washington is willing to go to raise revenues. The prime minister acknowledged that its neighbor is facing a budget deficit of more than $1 trillion, but stressed travel taxes, expected to raise $100 million yearly, would hinder economic recovery efforts of both nations.

The proposal came just weeks before Obama and Harper sit down to tackle a border security agreement that seeks to ease movement of people and goods between the two nations.

Harper said the border agreement talk aims to ensure trade and travel between Washington and Ottawa is facilitated and not hampered. He said imposing extra taxes on those activities would not help in the economic recovery.

The levy, already collected by the U.S. on other travelers, removes the exemption enjoyed by visitors from Canada, Mexico and the Caribbean since 1997.

View full post on Lifestyle And Leisure Stories